Tatas planning AirAsia India-AI Express merger
Tata Sons has plans to merge low-fare airline AirAsia India with Air India’s budget carrier Air India Express, The Economic Times reported.
Why it’s important: The Tata group is looking to achieve synergies and cut operational costs once it takes over Air India.
Tatas own an 84% stake in AirAsia India, so the integration is easier.
Tata is yet to conclude talks with Singapore Airlines on integrating the schedules of Vistara and Air India.
Tata owns 51% of Vistara and SIA holds the rest.
Tata Sons has held several meetings to discuss the integration of staff, and aircraft quality and safety checks, among other matters.
Duality of operations and staff redeployment are also being looked into for cost efficiencies.
The group is also planning to set up a single aviation holding company that will be an umbrella for all its airline businesses.
Zomato may put $ 500 million into Grofers for quick commerce
Zomato is in talks to invest as much as $ 500 million in Grofers, The Economic Times reported.
Why it’s important: It will be Zomato’s largest investment so far in a company.
The deal is likely to extend Zomato’s food delivery battle with Swiggy into the ultrafast commerce segment.
The financing will likely value Grofers at around $ 1.5 billion, up from $ 1 billion when Zomato first invested $ 100 million earlier.
The fresh capital will hike Zomato’s holding in Grofers to about 30%.
Vedanta demerger good for shareholders too: Anil Agarwal
The Vedanta Group Chairman Anil Agarwal in an interview with The Economic Times said that some of the businesses of the company deserve to be independent to grow and create value.
What the Chairman says:
Now, the company is evaluating and have appointed the best of advisers for the entire plan.
The intent is to announce the full process in the next 2-3 months.
The demerger is good for the shareholder because for one share (in Vedanta) they will get four shares (of different companies).
After restructuring, Vedanta Ltd will hold Hindustan Zinc and Balco; the ferroalloy business.
Vedanta Ltd will have 3-4 companies.
These companies will demerge and we will continue to hold the same shares.
At this point, not looking at any strategic investors.
FPIs likely to get to trade ‘non-sensitive commodity’ futures
A Sebi panel has decided to let foreign portfolio investors invest in listed futures contracts of ‘non-sensitive commodities’, The Economic Times reported.
Why it’s important: The move would add depth and liquidity to the Indian commodity derivatives market.
It is in the backdrop of China opening up commodity futures to global traders.
However, the Centre is weighing the impact of the proposed reform on prices, particularly that of agricultural commodities.
Opening the futures market to overseas investors would be a significant measure in a large country with a huge spot market.
Need to double hydropower capacity in next decade to cut dependence on coal: NHPC CMD
India will have to at least double its capacity in the next decade to reduce dependence on coal and integrate with its grid renewable energy generation such as solar and wind, NHPC chairman and managing director A K Singh said in an interview with The Economic Times.
What the CMD says:
Hydro is a critical part of the electricity basket.
The greater degree of integration of intermittent sources of power like solar and wind in the system shall provide impetus to hydropower development.
Have to double up our hydro capacity in the next decade.
NHPC has nine projects with a total installed capacity of 5,999 MW are in the construction stage.
A lot of focus is also on the development of renewable energy with a capacity of around 5000 MW are under consideration.
Hydropower is the most environment-friendly and cleanest source of energy available to mankind and it is relentlessly opposed.
NHPC has built more than 5,300 large dams and not even a single case of catastrophic failure has occurred in the country.
US urges major oil consumers to free up strategic reserves
The US has reached out to India and other major oil consumers to release their strategic petroleum reserves to control rallying crude oil prices, Mint reported.
Why it’s important: This follows the Opec-plus grouping ignoring requests of the US and India to boost output.
Last year, India purchased crude oil at $ 19 a barrel to fill its 5.3 million tonnes (mt) of strategic reserves and, in the process, it saved $ 685.11 million.
New Delhi also plans to build an additional 6.5 mt of strategic petroleum reserves.
International Energy Agency members maintain emergency oil reserves equivalent to at least 90 days of net imports.
IEA countries hold 1.55 billion barrels of public emergency oil stocks.
The US government’s push comes amid petroleum and natural gas minister Hardeep Singh Puri advising major oil consumers against selling their strategic reserves.
Investcorp plans to expand ops in India
Bahrain-based Investcorp plans to expand its presence with $ 2 billion in assets under management (AUM) over the next few years, Mint reported.
Why it’s important: Investcorp has so far invested $ 500 million across private equity and real estate deals in India.
To achieve the target, Investcorp will launch a new PE fund with a target corpus of $ 400 million in 2022.
The firm’s earlier private equity fund raised Rs 1,000 crore.
Mohammed Alardhi, executive chairman, Investcorp, said: “We have now invested in 12 companies in the private equity space in India and the pace of investments has increased during the pandemic. We want to raise more money from the local market and global markets for our investment in India.”
RBI’s digital currency may see pilot launch in Q1 of next fiscal
The RBI’s central bank digital currency may see its first pilot launch in Q1 of 2022-23, Business Standard reported.
Why it’s important: Work on the digital fiat currency is in an advanced stage.
The RBI is checking if intermediaries can be bypassed, and most importantly, if the technology should be decentralised or semi-centralised.
P Vasudevan, chief general manager, at the RBI’s Department of Payment and Settlement Systems, said: “I think somewhere it was said that at least by Q1 of next fiscal year, a pilot could be launched. We are bullish on that,”
